New Delhi, 14 July 2025 – In a major drive initiated today, the Income Tax Department has launched coordinated verification actions across multiple states to clamp down on fraudulent claims of tax deductions and exemptions by unscrupulous intermediaries and return preparers. This comes in the wake of extensive data analysis highlighting the misuse of various tax provisions under the Income‑tax Act, 1961.
🕵️ Investigations & Intelligence
- Organized rackets exposed: The investigations have revealed several schemes orchestrated by professional return-filing agents and intermediaries. These include fabricating exemptions, submitting false TDS returns, and claiming undue tax refunds.
- Geo-targeted enforcement: Recent search-and-seizure operations have been carried out across Maharashtra, Tamil Nadu, Delhi, Gujarat, Punjab, and Madhya Pradesh, unearthing digital and paper trails of falsified returns.
Misused Sections of the Income‑Tax Act
Unlawful claims have been detected under numerous provisions, including:
- Section 10(13A)
- Sections 80GGC, 80E, 80D, 80EE, 80EEB, 80G, 80GGA, and 80DDB
Targeted beneficiaries span a wide spectrum, from employees in MNCs, PSUs, and academic institutions to entrepreneurs. Many taxpayers were drawn into these scams by assurances of hefty refunds, with agents taking a cut of the payouts.
Tech-Driven Detection & Communication Gaps
Utilizing advanced AI tools, third-party financial data, and on-ground intelligence, the IT Department identified suspicious filing patterns. However, the overhaul of the e-filing system has revealed a reliance on temporary email addresses by these intermediaries. As a result, official notices often go unacknowledged or unnoticed.
Trust Taxpayers First: Voluntary Compliance
Staying true to its ethos of “Trust Taxpayers First,” the Department has ramped up outreach via SMS, emails, and on-site awareness drives. In the past four months, nearly 40,000 taxpayers voluntarily revised their returns, retracting ₹1,045 crore in incorrect claims.
🔒 Enforcement Ahead
Despite this encouraging compliance, many individuals continue to evade due taxes. In response, the IT Department plans to impose stiff penalties and pursue legal action, including prosecution, where warranted. Verification efforts currently cover 150 premises and are expected to unearth substantial digital evidence to dismantle these evasion networks.
📣 Taxpayer Advisory
Taxpayers are strongly urged to:
- File accurate income details and maintain updated contact information.
- Be wary of unauthorized agents promising inflated refunds.
- Respond promptly to Department communications.
✍️ In Summary
The Income Tax Department’s nationwide enforcement campaign marks a crucial move against systemic tax fraud. By combining technology, data analytics, and proactive taxpayer engagement, the Department not only recoups revenue but also reinforces public trust in India’s tax governance.
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